The Government of Ghana has announced plans to release GH¢4 billion as part payment toward the GH¢21 billion owed to road contractors across the country.
The announcement was made by the Minister for Roads and Highways, Mr. Kwame Governs Agbodza, during a press briefing on Tuesday, July 8, following a stakeholder engagement with road contractors and key sector players.
“On record, we are intending to pay some GH¢4 billion towards retiring part of the GH¢21 billion starting from this month.
I have no doubt that this will go down as one of the biggest lump-sum payments to road contractors in recent history,” he stated.
Why Contractors Withdrew from Project Sites
The Minister acknowledged the ongoing frustration among contractors and the public over stalled projects nationwide. He explained that many contractors had withdrawn from construction sites due to long delays in payments for completed works—some dating back several years.
“We fully understand the frustrations of contractors and the motoring public.
The delays have been significant, but the government is taking clear and bold steps to address the situation,” he said.
Vetting to Prevent Double Payments
Responding to criticism that the government had neglected its obligations to contractors, Mr. Agbodza clarified that the delay was necessary to vet and audit all outstanding certificates to ensure that no contractor was paid twice for the same project—a malpractice that has plagued past disbursements.
“When we assumed office, one of our first tasks was to thoroughly vet outstanding payments to avoid duplicate payments.
We are dealing with limited resources, and we must be prudent.
The Finance Ministry is ensuring that all road certificates presented for payment are legitimate and not repeated in the system,” he explained.
He added that while these processes caused some delays, they were essential for maintaining fiscal discipline and transparency in government spending.
Government Commitment to Road Infrastructure
Minister Agbodza reaffirmed the government’s commitment to infrastructure development and timely payment to contractors moving forward.
“The government is committed and will continue to prioritize paying for road works done.
We are aware of the impact poor roads have on transporters, drivers, and commuters, and we are taking bold steps to change that,” he emphasized.
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